The Investment Potential of Smart Buildings

Proven technology has the potential to change business models and materially disrupt products and services into the built environment.

Built in Amsterdam in 2015, the Edge is a 40,000m3 office building designed around controls, sensors and connected systems in order to improve energy efficiency, space management and worker engagement. It remains a brilliant example of a ‘smart building’, but to-date little of the technology it showcases has seen widespread adoption.

So, why has it taken so long? Perhaps the world hasn’t been quite ready or – more specifically – perhaps it was harder for estate managers to build the economic case. The wired solutions installed in the Edge building were both expensive and not suited for the retrofit market.

However, the next generation of products is now coming to market – these new wireless systems have a lower price point, are easier to fit and are starting to see meaningful adoption. To understand what’s really happening, CIL spoke to over 150 landlords, property managers, agents and suppliers across North America and Europe. We discussed important areas of focus and predicted associated spend with each of our interviewees. Our research explores the key themes we identified, including an increased focus on energy efficiency, the changing face of facilities management and the use of smart sensors and controls.